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Chengdu Xingrong Investment Co Ltd (000598) Fair Value & Analysis

Utilities · CN · Market cap 21.0B CNY (≈ $3.1B) · ISIN CNE000000HN4

What is Chengdu Xingrong Investment Co Ltd really worth?

CX Chengdu Xingrong Investment Co Ltd 000598 · SHE
Price¥7.22
Fair Value¥9.09
Upside+25.9%
Quality46/100

Below-average quality, trading 21% below our fair value of ¥9.09.

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Strengths

Highly profitable · 22.2% net margin
Moderate debt · generates free cash flow
Ranks above peers (13/15)

Risks

!Expensive Growth (revenue 5y +11.0 %/yr)
!Moderate moat 58/100
!Weak on future: 16 out of 100

For context

·3.25% dividend yield
Evidence: High Range ¥6.02 – ¥12.16

Fair value as of: Sep 1, 2026

From 26 valuation models · updated 4 days ago

Share price −0.1% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • Solid quality (46/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (¥6.02 to ¥12.16) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

¥8.20 ¥4.25 Fair Value ¥9.09 Mar 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 1, 2026.

How to read this chart

60‑month range ¥4.25 – ¥8.20 · fair‑value band ¥6.02 – ¥12.16 · the ¥7.22 price screens below the ¥9.09 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Sep 1, 2026.

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Analysis

Chengdu Xingrong Investment Co Ltd (000598) currently trades at ¥7.22, while our model-based Fair Value estimate is ¥9.09, implying the stock looks roughly 20.6% undervalued today. The Quality Score stands at 46/100 (below-average quality), in the Utilities sector. Bull case: the Growth Earnings group reads highest at a median of ¥15.36 per share, and 13 of the 25 models we run sit above the ¥7.22 price. Bear case: the Economic Profit group reads lowest at ¥4.24, and 12 of the 25 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Chengdu Xingrong Investment Co Ltd generated revenue of 9.1B CNY at a net margin of 22.2%. Revenue grew 3.2% year over year. It earns a return on equity of 9.9%. Net debt stands at 9.5B CNY. Fundamentals as of Sep 1, 2026

Our scenario range runs from ¥6.02 (bear case) to ¥12.16 (bull case); at ¥7.22, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 5% below its 52-week high and 12% above its 52-week low, currently above its 200-day average. For context, the median of 10 Utilities peers we cover trades at −33% fair-value upside, at 26%, 000598 screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly ¥0.3024 per share, which is 3.3 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF ¥3.22 77
Residual Income ¥6.12 ¥6.74 ¥9.68 76
Growth DCF ¥0.0900 ¥2.81 75
All 26 models by family
DCF Models
FCF DCF ¥3.22 77
Owner Earnings ¥0.3900 ¥4.04 73
5Y Revenue Exit ¥1.14 ¥6.07 ¥13.37 65
5Y EBITDA Exit ¥4.34 ¥13.28 ¥25.53 70
5Y P/E Exit ¥3.41 ¥11.19 ¥20.94 66
10Y Revenue Exit ¥0.0900 ¥4.60 ¥12.47 57
10Y EBITDA Exit ¥2.49 ¥10.16 ¥23.86 61
10Y P/E Exit ¥1.85 ¥8.55 ¥19.66 57
Earnings-Based
Graham-Dodd ¥4.57 ¥27.86 ¥38.86 63
Lynch FV ¥7.97 ¥11.39 ¥14.81 61
PEG = 1.0 ¥7.97 ¥11.39 ¥14.81 57
EPV ¥3.18 ¥4.24 ¥5.17 74
Dividend Discount
Gordon GGM ¥3.31 ¥6.88 ¥10.91 66
DDM Multi-Stage ¥3.31 ¥5.80 ¥7.22 66
Multiples
P/E Multiple ¥9.07 ¥12.09 ¥15.11 63
P/S Multiple ¥5.70 ¥7.60 ¥9.50 58
P/B Multiple ¥8.56 ¥11.42 ¥14.27 55
EV/EBIT ¥6.02 ¥9.09 ¥12.16 65
EV/EBITDA ¥7.26 ¥10.74 ¥14.22 66
EV/Revenue ¥2.13 ¥4.41 ¥6.69 51
Asset-Based
NCAV (Graham) ¥3.50 ¥4.69 ¥7.01 54
Growth DCF
Growth DCF ¥0.0900 ¥2.81 75
Rev-Margin DCF ¥1.14 ¥5.77 ¥12.35 65
Economic Profit
Residual Income ¥6.12 ¥6.74 ¥9.68 76
ROIC Compounder ¥3.18 ¥4.24 ¥5.17 72
Growth Earnings
Growth-Adj P/E ¥10.75 ¥15.36 ¥19.97 67

Widest divergence: Growth Earnings (¥15.36) versus Growth DCF (¥0.0900). Highest evidence: FCF DCF (77).

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Key figures & financial health

P/E ratio 10.6
P/S ratio 2.35 P/E × margin
EPS (TTM) ¥0.6800 price ÷ EPS = P/E 10.6
Dividend yield 3.3% payout 34.6%
Net margin 22.1% FY2025
Return on equity 9.9% TTM
More key figures
Profitability
Return on assets (EBIT) 5.0% avg 5y
Operating margin 33.8% TTM
Growth
Revenue (TTM) 9.1B CNY TTM
Revenue growth (YoY) +3.2% 3y avg +5.9%
EPS growth (YoY) +3.9%
Balance sheet & cash flow
Free cash flow 334M CNY FY2025
Net debt 9.5B CNY FY2025 · ≈ 28.4 yrs of FCF

Figures from reported company fundamentals · as of Sep 1, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 46/100

Of which business quality 45 · Market factors (momentum, volatility) 61

Profitability 36
Margins and returns on capital today
Quality Growth 22
Are margins and returns improving?
Cashflow 55
Earnings quality: real cash, not paper profit
Fin. Strength 46
Balance sheet, leverage, solvency risk
Investment 30
Disciplined investing over empire-building
Low Volatility 95
Calm price path (market factor)
Momentum 44
Price trend over the last 3–12 months (market factor)
52W Momentum 50
Distance to the 52-week high (market factor)
Net Issuance 80
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Chengdu Xingrong Environment Co., Ltd. engages in the tap water business in China. It is involved in the water extraction from water sources, water purification, water pipe transportation, and tap water sales and after-sales services. The company also engages in the sewage treatment business, such as urban and rural domestic sewage and industrial wastewater.

Full company description

Chengdu Xingrong Environment Co., Ltd. engages in the tap water business in China. It is involved in the water extraction from water sources, water purification, water pipe transportation, and tap water sales and after-sales services. The company also engages in the sewage treatment business, such as urban and rural domestic sewage and industrial wastewater. In addition, it is involved in the environmental protection business, including waste incineration power generation, landfill leachate treatment, sludge and food waste disposal, and engineering businesses. The company was formerly known as Chengdu Xingrong Investment Co., Ltd. and changed its name to Chengdu Xingrong Environment Co., Ltd. in June 2015. Chengdu Xingrong Environment Co., Ltd. was founded in 1995 and is based in Chengdu, China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Chengdu Xingrong Investment Co Ltd reported revenue of 9.1B CNY in FY2025 versus 6.8B CNY in FY2021, a compound +7.7%/yr. Reported net income was 2.0B CNY in FY2025, compounding +7.6%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
9.1B CNY
Latest YoY
+0.2%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.9%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.0%
Avg. revenue growth/yr (32Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+21.0%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+12.3% (9.0 + 3.3)
Revenue +7.7%/yr
FY21 6.8B CNY
FY22 7.6B CNY
FY23 8.1B CNY
FY24 9.0B CNY
FY25 9.1B CNY
Net income +7.6%/yr
FY21 1.5B CNY
FY22 1.6B CNY
FY23 1.8B CNY
FY24 2.0B CNY
FY25 2.0B CNY
Character of growth · EPS growth decomposed (2014-2025) +10.1 % p.a.
Revenue per share +12.8 %

of which total revenue +12.8 % · buybacks/dilution +0.0 %

EBIT margin −0.7 %
Tax rate +0.0 %
Residual (interest, one-offs) −1.7 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Chengdu Xingrong Investment Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/000598

Peer Group

Utilities - Regulated Water · 64 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 46 · Above median
Fair Value upside +26% · Above median
Return on equity (TTM) 10% · Above median
Return on assets 3% · Above median
Net margin (TTM) 22% · Top 25%
Operating margin (TTM) 34% · Above median
Revenue growth 3% · Below median
Dividend yield (TTM) 3.3% · Above median
Debt / equity 0.68× · Lower than median

Valuation Multiples vs Utilities - Regulated Water median · lower = cheaper

P/E (TTM) 10.6× · Cheaper than 75% of peers
P/B 1.00× · Cheaper than median
P/S (TTM) 2.30× · Cheaper than median
P/FCF 9.4× · Pricier than 75% of peers
EV/EBITDA 6.7× · Cheaper than 75% of peers
PEG 0.35× · Cheaper than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE68 · sector 0
FUTURE16 · sector 28
PAST40 · sector 31
HEALTH66 · sector 65
DIVIDEND65 · sector 52

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Utilities - Regulated Water stocks, each showing price versus our Fair Value estimate (as of Sep 1, 2026).

Stock Price Fair Value vs Fair Value
American Water Works Company AWK $138.30 $65.80 −52%
SBS SBS $4.82 $8.13 +69%
Essential Utilities, Inc WTRG $41.10 $21.81 −47%
Guangdong Investment Limited 0270 HK$8.15 HK$12.82 +57%
Grandblue Environment Co 600323 ¥29.61 ¥33.29 +12%
American States Water Company AWR $89.88 $47.94 −47%
California Water Service Group CWT $50.48 $33.56 −34%
Chongqing Water Group 601158 ¥4.14 ¥2.77 −33%
Beijing Enterprises Water Group 0371 HK$1.74 HK$3.00 +73%
H2O America, through its subsidiaries, HTO $62.57 $25.29 −60%

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Frequently asked questions

Is Chengdu Xingrong Investment Co Ltd (000598) overvalued or undervalued?
As of Sep 1, 2026, our model estimates a fair value of ¥9.09 versus a price of ¥7.22, about +26% upside (undervalued).
What is the fair value of 000598?
Our model-based fair value for Chengdu Xingrong Investment Co Ltd is ¥9.09 (as of Sep 1, 2026), built from audited fundamentals. The current price: ¥7.22.
What is the quality score of 000598?
Chengdu Xingrong Investment Co Ltd has a Quality Score of 46/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Chengdu Xingrong Investment Co Ltd (000598)?
Chengdu Xingrong Investment Co Ltd reported trailing-twelve-month revenue of about 9.1B CNY (latest available figure, as of Sep 1, 2026).
What is the net profit margin of 000598?
The net profit margin of Chengdu Xingrong Investment Co Ltd is about 22.2%, meaning it keeps roughly 22.2% of revenue as net income. Based on the latest reported figures.
Does Chengdu Xingrong Investment Co Ltd pay a dividend?
Chengdu Xingrong Investment Co Ltd currently shows a dividend yield of about 3.25% relative to its recent price (as of Sep 1, 2026).
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